The convergence between the Department of Agrarian Reform (DAR) and the Cooperative Bank of Cagayan is crucial for the empowerment and financial stability of agrarian reform beneficiaries (ARBs) and their organizations. Here’s why this partnership is important:
1. Improved Access to Credit and Microfinance
Many ARBs struggle with limited financial resources. Through this convergence, ARBs and their organizations gain easier access to agricultural loans, microfinance programs, and credit lines, enabling them to invest in:
• Farm inputs (seeds, fertilizers, pesticides)
• Farm equipment and machinery
• Post-harvest facilities
• Livelihood and agribusiness projects
2. Strengthening Agrarian Reform Beneficiary Organizations (ARBOs)
The Cooperative Bank of Cagayan provides financial services tailored for ARBOs, enabling them to serve as financial intermediaries for their members. This strengthens ARBOs by:
• Increasing their capacity to re-lend to their members.
• Enhancing their financial sustainability.
• Promoting cooperative development and self-reliance.
3. Economic Growth and Rural Development
Providing financial assistance to ARBs helps increase agricultural productivity and income, leading to overall rural development. This results in:
• Job creation in farming and agribusiness sectors.
• Stronger local economies as farmers have more purchasing power.
• Reduced poverty in agrarian communities.
4. Reduced Dependence on Informal Lending
Without formal credit access, many farmers turn to loan sharks (5-6 lending system), which charge high-interest rates. The collaboration between DAR and the Cooperative Bank of Cagayan offers affordable and fair financing, protecting ARBs from exploitative lending practices.
5. Supporting Government Agrarian Reform Goals
This partnership aligns with DAR’s mission to uplift the lives of ARBs by ensuring they receive not just land but also the necessary support services to make their land productive and profitable. It complements other DAR programs like:
• Agrarian Production Credit Program (APCP)
• Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (RCEF)
• Microfinance support for small farmers
Conclusion
The convergence between DAR and the Cooperative Bank of Cagayan is a game-changer for ARBs in the region. It provides them with the financial means to enhance agricultural productivity, strengthen their cooperatives, and improve their overall livelihood. This partnership fosters a sustainable and inclusive rural economy that benefits not only farmers but also the broader community. RD Primo Lara, DAR-R02😎